Should You Forget Boeing and Buy These 2 Hot Growth Stocks Instead?
If investors want exposure to aerospace in their portfolio, then Boeing (NYSE: BA) is a good place to start. Still, I think there are plenty of other stocks to look at with exposure to the same end markets, and companies like Woodward (NASDAQ: WWD) and Hexcel (NYSE: HXL) (both Boeing suppliers) spring to mind. Here's why they might be a better value on a risk/reward basis, and a look at whether it would be smart to "ignore" Boeing.The things Boeing needs to do can be seen as challenges or opportunities.Turning BDS to profitability looks like more of a challenge than an opportunity right now. Management believes BDS could turn cash flow positive in 2026 or 2027, and even that mediocre outlook could be challenged if Defense Secretary Pete Hegseth cuts the Pentagon budget as expected. An additional challenging wrinkle, the troublesome (for Boeing) fixed-price development programs could be seen as a win by the U.S. government as it leverages its negotiating position with defense contractors, which might encourage the government to insist on more fixed-price defense programs.Continue reading
If investors want exposure to aerospace in their portfolio, then Boeing (NYSE: BA) is a good place to start. Still, I think there are plenty of other stocks to look at with exposure to the same end markets, and companies like Woodward (NASDAQ: WWD) and Hexcel (NYSE: HXL) (both Boeing suppliers) spring to mind. Here's why they might be a better value on a risk/reward basis, and a look at whether it would be smart to "ignore" Boeing.
The things Boeing needs to do can be seen as challenges or opportunities.
Turning BDS to profitability looks like more of a challenge than an opportunity right now. Management believes BDS could turn cash flow positive in 2026 or 2027, and even that mediocre outlook could be challenged if Defense Secretary Pete Hegseth cuts the Pentagon budget as expected. An additional challenging wrinkle, the troublesome (for Boeing) fixed-price development programs could be seen as a win by the U.S. government as it leverages its negotiating position with defense contractors, which might encourage the government to insist on more fixed-price defense programs.
